Bovis bounces back with profits surge

28 Feb Bovis Homes Group grew pre-tax profits by 47% in 2018 to £168.1m on revenue up 3% at £1,061.4m.

It is a long way from the £1.1bn pre-tax profit posted by Persimmon earlier this week, or even Taylor Wimpey’s £811m. But for Bovis, after recent crises, it represents a solid bounce-back under Greg Fitzgerald, the former Galliford Try chief.

Greg Fitzgerald was recruited in 2017 to rescue Bovis Homes’ sullied reputation after the company was revealed to have been paying residents to move into unfinished homes so that completion targets could claim to have been met.

As a result of costly actions taken to put some discipline back into the business, pre-tax profit dipped 26% in 2017 to £114.0m, from a previous record £154.7m in 2016. In 2018, however, they were back up higher than ever.

Total completions in 2018 reached 3,759 units (2017: 3,654) at an average selling price of £273,200 (2017: £272,400).

Chief executive Greg Fitzgerald said: “The group has made substantial progress operationally over the past 18 months delivering record profits and a step change in our operating margin. We have transformed the quality of our product and customer service and are delighted this is reflected in our 4-star housebuilder status for 2018.”

In 2017 Bovis Homes only had a 2-star rating.

Mr Fitzgerald continued: “Looking ahead, we are implementing many initiatives which will continue to build a better Bovis Homes including our new Phoenix housing range with its first completions this spring, and the development of our new Partnership Housing division. We have a strong sales position and excellent land visibility and expect to make further operational and financial progress in 2019.”